News

Gazprom and OMV Expanding Cooperation

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Elisabeth Udolf-Strobl, Minister for Digital and Economic Affairs of Austria, took place today at the St. Petersburg International Economic Forum 2019.

The meeting participants discussed relevant issues related to cooperation. The parties noted the continued and active growth in the Austrian imports of Russian gas supplied by Gazprom. In the period from January 1 through June 6, 2019, these gas deliveries reached 6.6 billion cubic meters, an increase of 27 per cent against the same period of 2018.

Particular attention at the meeting was paid to the Nord Stream 2 project.

Alexey Miller and Rainer Seele, Chairman of the Executive Board of OMV, today signed a number of documents to expand cooperation between the companies.

The signing ceremony took place in the presence of Alexander Novak, Minister of Energy of the Russian Federation, and Elisabeth Udolf-Strobl.

The parties signed a Memorandum of Understanding to implement a joint cultural project in 2019. According to the document, it is planned to organize “Imperial Capitals: St. Petersburg – Vienna. 20th Century, " a music and visual art event showcasing Russian and Austrian 20th-century art, in St. Petersburg this October, as well as an opera performance for children at the Vienna State Opera this December. In addition, a Memorandum of Understanding was signed to execute a joint cultural project in 2020.

The parties signed a Memorandum of Understanding on LNG cooperation. Earlier, it had been agreed that Gazprom would supply OMV with an equivalent of 1.2 billion cubic meters of natural gas in the form of LNG in 2020. The Memorandum stipulates that the parties intend to continue their cooperation in the LNG sector after 2020, specifically via large- and small-scale LNG supplies. It is also planned to explore the possibilities of developing joint infrastructure projects in the field of small-scale LNG.

Background

The St. Petersburg International Economic Forum 2019 is being held at the EXPOFORUM Convention and Exhibition Centre from June 6 to 8. This year’s key topic is Creating a Sustainable Development Agenda.

OMV AG is Gazprom’s main partner in Austria. The companies cooperate in gas production, transportation and supplies.

In June 2018, an Agreement was signed to extend until 2040 the existing contract between Gazprom Export and OMV Gas Marketing & Trading GmbH for Russian gas supplies to Austria.

In October 2018, Gazprom and OMV signed the Memorandum on Strategic Cooperation and the Basic Agreement on Asset Sale.

Nord Stream 2 is the construction project for a gas pipeline with the annual capacity of 55 billion cubic meters from Russia to Germany across the Baltic Sea. In 2017, Nord Stream 2 AG signed agreements with ENGIE, OMV, Royal Dutch Shell, Uniper, and Wintershall to provide financing for 50 per cent of the total cost of the project.